In Malaysia, investment is very important, and

Malaysia, investment is very important, and it has become a useful instrument
to protect and ensure their financial security are safe. Investment might help
a country to fight the inflation and help a country to create more wealth.
Investment can help those people prepare for unexpected event and help them to
achieve financial goals. In financial economic, investment is a useful tool
that can make the adequate cash flows between the surplus spending unit and
deficit spending unit. Not only this, investment can be helping a country to
increase the economic growth, provide financial stability and maintain the
level of income.

rate of investment among young investor is maintaining low due in Malaysia.
Currently, most of the young investor facing individual financial problem
because they have unstable income to cover all those costs. Besides that, a
country inflation might increase the prices of good and so the purchase power
of young investor will decrease. Bank Negara Malaysia had advice young investor
to participate investments to solve this issue. By finding the main issue of
young investor not participate in investment, this study has focused to study
the determinants that might affect Kuala Lumpur Young Investor decision making
in stock investment which is risk tolerance, financial literacy, cost of living
and psychological behaviour.

research is mainly focus on young investor because young investor always is the
main issue to motivate the economic growth increase in a country. According to (Justin Bynum, 2018), he states that they
are many different philosophies in investor life cycle as investor age or gender
move through different stage of life cycle. I had find three phases to explain investment
life cycle.

phase:  This is the earliest stage for an
investor in the life cycle, they are usually just a freshman in job with an
unstable income. During this phase, investor has a long-time horizon and often willing
to accept more risk because young investor has more time to achieve their
goals. In this phase, young investor might face some financial problem which is
short term needs and the appropriate amount of investment risk.

phase:  During consolidation phase,
investment might become more balanced between growth and income. They usually
own a family and they not willing to spend to much on the high-risk investment.
They usually just maintain stable income for their family. In this phase, it involves
many of large purchases and immediate cash needs are already addressed and
their income is significantly out pacing expenses allowing for more rapid building
of wealth.

phase:         During spending phase, almost
all earned income has ended and investment income is the only living expenses.
This phase also calls retirement stages. Investor that in this age, their investment
is more near to their consumption because they lack of earned income.


main reason that focus on young investor decision making in stock investment

in this research was to
find the factor that might affect young investor decision making.